A popular high street fashion brand, often admired by Kate Middleton, is facing the possibility of going into administration. LK Bennett submitted a notice of intention to appoint an administrator at the High Court on January 14. This move indicates the company’s readiness to enter administration and triggers a temporary legal pause preventing creditors from taking legal actions for ten days.
This is the second instance in recent times where LK Bennett has issued a notice of intention, having previously done so on December 30. The brand has been collaborating with advisers at Alvarez & Marsal in recent weeks.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. Currently, it has nine standalone stores and 13 concessions. In 2008, Ms. Bennett sold the business for an estimated £100 million to a consortium led by the private equity firm Phoenix Equity Partners.
LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, which is overseen by Rebecca Feng. Following the acquisition, Ms. Feng expressed the commitment to continue operating the business in the UK while preserving the brand’s heritage through British design and its existing supply chain.
Reports suggest that Next is showing interest in potentially acquiring LK Bennett, focusing on the brand and intellectual property assets rather than its physical retail outlets. LK Bennett recorded a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024, according to its latest financial statements.
Additionally, Next is reportedly considering acquiring the family-owned shoe retailer Russell & Bromley. Sky News indicates that Next is working with advisory firm Retail Realisation to pursue the 145-year-old shoe and bag retailer, which operates 37 stores across the UK. Russell & Bromley had previously engaged Interpath Advisory to secure new external financing as part of a five-year turnaround strategy.
Apart from Russell & Bromley, other fashion brands have also shown interest in acquiring the company, as per sources cited by Sky News. Founded in 1880 by George Bromley and Elizabeth Russell in Eastbourne, Russell & Bromley currently employs over 450 individuals and is managed by Andrew Bromley. In recent years, Next has expanded its brand portfolio by acquiring companies like Cath Kidston, Joules, Seraphine, and Made.com.